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Research: Steps to take when you have no credit history -

Nowadays a lot of people are plagues with the problem of not having a credit history. Such a situation is sometimes caused by one not having a credit history. This could be because you have just entered the country and you still have not opened a credit account. Other reasons could also be it because you are a student and have just graduated from high school. You can easily start building one. There are many people who live without credit cards and they are happy. You just need to survive till your credit account is approved.

The first step that you need to take is to start building your credit history. You will first have to learn how to do this. A lot of people keep trying but they never perfect the balancing act. Building a credit history is an ongoing process and can never be hurried. You need to do it everyday to reach a respectable level. It is very difficult to build a credit history if you have other commitments or are travelling out of the country extensively.

You need to start applying for a bank account. Once you do this, you will have to wait for around six months to build trust with the bank. After this, it will be easier to get an approval if you apply for a credit card because the bank knows you. If not, it will be difficult and if you are rejected, your credit history will suffer. Apply only to those credit card companies that are known to hand out cards to starters or people with a bad credit history. The terms and conditions may not be great, but in the beginning the trick is to get a credit card at the first attempt. You need not worry about terms and conditions at this moment. There are certain no credit check cards that help a person build a credit history. Go for one such card and start off right away.

Use your checking account with a debit card if you do not have a credit card. A debit card will give you the ease of operation associated with credit cards but you will only be using your own money. You can happily pay for items with money that you have earned. You will stop paying interest forever! But when you do get your credit card, start making regular purchases with it. Buy your essentials in order to bill the card. Pay back the money due regularly before it has passed it deadline. This will ensure that your credit history does not suffer. Then you could also look at other options to build your credit history like going for an auto loan or something. This is also a good idea as you will easily be approved for such a loan. This is because auto loans are automatically secured by the automobile. But whatever you do, ensure that you make regular payments. Do not get into the vicious cycle of debt where you pay just the interest and not the principle amount every month.